Space Exploration Technologies Corporation (“SpaceX”) raised $1 billion in a financing round with two investors, Google and Fidelity Investments. Google took down $900 million of the financing in exchange for a 7.5% stake in SpaceX.
An increasing portion of Federal contractor M&A activity in recent years has been characterized by the emerging phenomenon of transactions amongst middle market companies. This trend has been driven primarily by: (i) ability to enhance business development capabilities; (ii) increasing middle market competition; (iii) the challenge of transition from small business to large, and (iv) capitalizing on priority market access.
On Thursday, Bombardier Inc. announced that it intends to temporarily halt work on one of its flagship models, the Learjet 85 aircraft. Delivery of Bombardier’s Learjet 85 was originally scheduled for the end of 2013, but subsequently delayed beyond 2014 given a number of manufacturing problems.
On Tuesday, Boeing reported the highest annual orders and deliveries of its commercial jetliners in the Company’s history. With net new orders of 1,432 in 2014, Boeing topped its previous record of 1,355 orders made in 2007.
As expected, 2014’s GovCon M&A market ended on an uptick as–deal announcement-wise– the fourth quarter was the busiest quarter of the year. While the business-side of the GovCon market remains challenging from a budget and competitive perspective, many of the factors that contributed to the slight GovCon M&A volume increase in 2014 are expected to support continued deal activity into 2015.
Earlier this week, Bombardier Inc. announced a deal with an unnamed customer for a firm order of 16 of its CSeries regional jets, along with options to purchase an additional eight jets. The order, for the CRJ900 NextGen model, is worth approximately $1.12 billion at list price should the customer exercise its options.
The Pentagon approved another $3 billion in foreign arms sales to Iraq for General Dynamic’s M1A1 Abrams tanks and for AM General’s Humvee armored cars. Pending congressional approval, the deal would bring the total U.S. weapons sales to Iraq to almost $15 billion.
The Aerospace Industries Association (“AIA”), a premier trade association representing major aerospace and defense companies, released it 2014 Year-End Review and Forecast earlier this week.